Zions Bank Q4 EPS Up 30.5% to $1.75, Net Revenues Rise 8.4%
Zions Bank’s Q4 adjusted EPS rose 30.5% to $1.75, beating estimates by $0.18 while net revenues climbed 8.4% to $902 million. The bank’s CET1 ratio improved to 11.5% and management forecasts moderate NII growth assuming two 25 bp rate cuts this year.
1. Q4 Earnings and EPS Growth
Zions Bank reported Q4 adjusted EPS of $1.75, topping consensus by $0.18 and marking a 30.5% year-over-year increase driven by higher net interest income and fee income. Excluding a combined $0.11 per share benefit from SBIC gains and FDIC assessment reversal, GAAP net income rose 31% to $262 million.
2. Revenue, Margins, and Expense Trends
Net revenues (tax equivalent) reached $902 million, up 8.4% year-over-year, led by an 8.9% increase in NII to $683 million and non-interest income growth of 7.8% to $208 million. NIM expanded 26 bps to 3.31%, while adjusted non-interest expenses rose 7.6% to $548 million, keeping the efficiency ratio near 62.3%.
3. Asset Quality and Capital Strength
Non-performing assets ratio ticked up 2 bps to 0.52%, but net charge-offs plunged to $7 million from $36 million and provisions fell to $6 million. Common equity tier 1 capital ratio improved to 11.5%, Tier 1 ratio to 11.6%, and leverage to 9%, with ROAA at 1.16% and ROTCE at 17.9%.
4. 2026 Outlook
Management anticipates moderate year-over-year loan growth driven by commercial portfolios and assumes two 25 bp rate cuts this year to support NII growth. Customer-related non-interest income is expected to rise with increased activity, while technology and marketing investments will drive moderate expense growth and positive operating leverage.